The regulation of flaring and venting in the energy sector is governed by the Oil and Gas Authority (OGA) under the Energy Act 1976 and the Petroleum Act 1998. These legislations mandate operators to obtain consents for flaring and venting of hydrocarbons during production operations.
OGA Strategy for Net Zero Obligations
In February 2021, the OGA implemented a strategy with net zero obligations for the UK oil and gas industry. This strategy requires relevant entities to assist in achieving the net zero target by reducing greenhouse gas emissions, including those from flaring and venting.
Principles for Flaring and Venting
The OGA expects the industry to adhere to the following principles:
- Flaring and venting emissions should be minimized.
- Aim for zero routine flaring and venting by 2030.
- All new developments should be planned with zero routine flaring and venting.
Process for Obtaining Consent
Licensees and terminal operators must apply for consent to flare and/or vent gas emitted from their installations. Applications are submitted via the Energy Portal for offshore and onshore consents. Terminal flare and vent consents are applied for in writing directly to the OGA.
Before submitting an application, operators should refer to the provided guidance and may be required to provide additional information by the OGA.
Operators are advised to maintain close contact with the OGA throughout all stages, from design to decommissioning. Additionally, coordination with BEIS OPRED regarding proposed changes is essential.
Environmental Permits
Separate permits or consents may be required under environmental legislation, including the Emissions Trading Scheme. Operators should consult the Environment Agency or the Scottish Environmental Protection Agency for onshore installations and terminals.
If flaring or venting is required without an existing license, BEIS should be contacted for assistance.
For detailed guidance, refer to the Flaring and Venting Guidance document and the Field Consents System User Guidance.
Methane Emissions from the Energy Sector and the EU Emission Trading System
Background
The European Green Deal emphasizes the role of gas in the energy transition. However, addressing methane emissions is crucial, as they contribute significantly to global warming. While the EU has a minor direct responsibility for methane emissions, it is the largest buyer of natural gas internationally, providing an opportunity to influence emission reduction strategies in gas-producing countries.
EU Emission Trading System (EU ETS)
Including methane emissions in the EU ETS could incentivize gas network companies to reduce emissions. This system, established in 2005, provides a framework for regulating greenhouse gas emissions in the EU.
For further details on methane emissions and the EU ETS, refer to the original documents and resources provided by the Oil and Gas Authority.